Date
15 October 2018
Xiaomi is said to be considering a dual listing as Chinese authorities want tech firms to participate in the domestic capital markets. Photo: Bloomberg
Xiaomi is said to be considering a dual listing as Chinese authorities want tech firms to participate in the domestic capital markets. Photo: Bloomberg

Xiaomi weighs dual listing in China and Hong Kong: WSJ

Smartphone maker Xiaomi is considering a dual initial public offering in China and Hong Kong as it has been told by mainland authorities that they want the firm to list its shares on a domestic bourse, according to the Wall Street Journal.

Citing sources familiar with the matter, the paper suggested that the Beijing-based company is likely to heed the request from authorities and opt for a dual float in the mainland and in Hong Kong.

The tech firm aims to raise at least US$10 billion in the IPO, which could come in the second half of the year.

Xiaomi is targeting a valuation of US$80 billion to US$100 billion, a source told the Journal.

A dual listing would be a win for Chinese regulators, which have been trying to get large homegrown companies to participate in the country’s capital markets, the paper noted.

Tech giants such as Alibaba Group, Baidu and Tencent had listed themselves overseas in the past, a trend that authorities want to reverse now.  

After a meeting in early January with tech firms, Zhang Shenfeng, assistant chairman of the China Securities Regulatory Commission, said the agency aims to “keep the good companies at home” and allow them to go public as soon as possible.

Three weeks later, commission Chairman Liu Shiyu said at a conference that China’s listing rules could be changed to help support more technology and new-economy companies.

A dual listing could benefit Xiaomi, which was founded in 2010, as it sells its phones mostly in China where investors are very familiar with its brand.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe